Granger causality test
In the Granger causality test, each row represents a different independent variable being
tested for causality with the dependent variable (FDI). The F-statistic and p-value indicate
whether there is statistically significant causality between the variables.
Granger Causality Test Results
FDI and Inflation Rate
F (2, 32) = 0.873, p = 0.429 (Not significant)
F (2, 32) = 0.421, p = 0.661 (Not significant)
F (2, 32) = 0.158, p = 0.855 (Not significant)
The F-statistics and associated p-values for the Granger causality test between FDI and
Inflation Rate suggest that there is no statistically significant causality between these two
variables. This means that the past values of the Inflation Rate do not significantly help predict
the current values of FDI, and vice versa.
FDI and Interest Rate
F (2, 32) = 0.715, p = 0.497 (Not significant)
F (2, 32) = 2.153, p = 0.133 (Not significant)
F (2, 32) = 0.114, p = 0.893 (Not significant)
Similar to the FDI and Inflation Rate relationship, the Granger causality test results
between FDI and Interest Rate indicate no statistically significant causality between these
variables. This suggests that past values of the Interest Rate do not significantly help predict the
current values of FDI, and vice versa.
FDI and Exchange Rate
F (2, 32) = 0.210, p = 0.813 (Not significant)
In the Granger causality test, each row represents a different independent variable being
tested for causality with the dependent variable (FDI). The F-statistic and p-value indicate
whether there is statistically significant causality between the variables.
Granger Causality Test Results
FDI and Inflation Rate
F (2, 32) = 0.873, p = 0.429 (Not significant)
F (2, 32) = 0.421, p = 0.661 (Not significant)
F (2, 32) = 0.158, p = 0.855 (Not significant)
The F-statistics and associated p-values for the Granger causality test between FDI and
Inflation Rate suggest that there is no statistically significant causality between these two
variables. This means that the past values of the Inflation Rate do not significantly help predict
the current values of FDI, and vice versa.
FDI and Interest Rate
F (2, 32) = 0.715, p = 0.497 (Not significant)
F (2, 32) = 2.153, p = 0.133 (Not significant)
F (2, 32) = 0.114, p = 0.893 (Not significant)
Similar to the FDI and Inflation Rate relationship, the Granger causality test results
between FDI and Interest Rate indicate no statistically significant causality between these
variables. This suggests that past values of the Interest Rate do not significantly help predict the
current values of FDI, and vice versa.
FDI and Exchange Rate
F (2, 32) = 0.210, p = 0.813 (Not significant)
